An alternative fee arrangement refers to pricing for legal services using anything other than the traditional hourly billing model. Examples of alternative fee arrangements include include subscription-based, capped fees, flat fees, success fees, and more.
With this template, the alternative fee experts at AltFee will walk you through the steps to optimizing pricing, and help you begin to scope and track alternative fee arrangements.
Best Practices:
- Guideline Building. Break down your services into individual project types. Identify factors that add to scope and complexity of each project. Determine a fixed fee amount as a guideline for the base fee of the project, as well as complicating factors that would increase the fee.
- Value-Based Considerations. Identify ways in which you deliver value to your client for each project type. Build a list of questions and considerations to help better understand your client’s perception of value.
- Description of Services. Create client-facing messaging for each project type that both describes the service being provided, as well as the value being delivered. (Tip: Create multiple message types so you can customize based on each client’s scope.)
- Price Client Matters. Use the guidelines to help facilitate the upfront client conversation. Identify what is in scope and determine what the client values. Collaborate with your team, and price the project based on your analysis.
- Continuously Learn. Debrief after a project and incorporate all learnings into your guidelines. Update factors, fee amounts, value-based considerations, and description of services based on learnings.
